Advocacy

NOTICE TO ALL SOUTH CAROLINA VACATION RENTAL MANAGERS REGARDING S. 953:

South Carolina Senate Bill S.953 is proposed legislation introduced on January 11, 2024, and is currently in the Senate Judiciary Committee. This is a bill that has been heavily influenced by foreign entities, especially Airbnb and similarly situated online travel agencies (OTAs), often referred to as travel agencies, intermediaries, lodging marketplaces, etc.

While on the surface, this bill seems to promote better tax collection, in actuality, it does just the opposite. This bill removes all forms of state government oversight over the vacation rental industry by taking the OTA out from under the requirements that our local, licensed Realtors have to operate. These foreign OTAs, which number in the hundreds, all operate differently. This bill requires all OTAs to keep our advanced rental deposits, fees, and taxes, which sends them out of state to offshore and non-South Carolina accounts without any measure of government control.

A large number of OTAs operate as true distribution channels (platforms). They only distribute a listing for a fee and pass along guest information, rental deposits, and taxes to the rental companies, hosts, and partners that are required by South Carolina law to be licensed and place the money in trust accounts in banks doing business in South Carolina. This allows for control over funds from a state compliance standpoint.

Some companies, like Airbnb, are the merchants of record and totally control all aspects of their rentals. They hold the funds and make millions in interest by holding onto advanced deposits and taxes. That's why they are pushing Senate Bill S. 953. This bill allows them to hold the money while removing the state of South Carolina's ability to control these monies and do so without fear of penalty.

Tourism is the leading industry in South Carolina. For many years licensed and regulated real estate rental managers have worked hard to develop a business model that has greatly benefited our state. They have allowed families and guests of our state to find safe, comfortable, affordable accommodations while ensuring properties are well-kept. When these out-of-state companies, like Airbnb, engage in business in South Carolina, they implicitly affect commerce and our residents. Proposed South Carolina Senate Bill S. 953 provides an outright lack of governmental oversight and removes the need for these entities to follow and operate with consumer protection laws. This will result in a heightened potential for unsafe environments, deceptive marketing and advertising practices, unfair pricing, and little to no recourse for consumers in the event that harm is created by these entities.

Senate bill S. 953 has the potential for negative unintended consequences for South Carolina's largest industry, tourism. The bill is short-sighted and could have deleterious impacts that South Carolina may not recover from. Just say “NO” to S. 953.